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I've read more thana fewarticles that sensationalize the large dollar amounts that Digital Influencers are making. I've also overheard many people having conversations about this that indicate they think this is frivolous. I want to tell you that when I hear anyone snicker at what Digital Influencers are making, I automatically think:

That person is out of touch with the reality of marketing today - these kids in their bedrooms with their iPhones making videos are who people listen to (especially Millennials, who everyone seems to want to reach).

That person is going to regret their dismissal of Digital Influencers when they are priced higher than the current market rates for other forms of advertising.

Just because you don't understand why this is happening doesn't mean it isn't happening. And it's only the beginning.

Doing The Basic Math

The simplest way to describe the value is by presenting the basic math. When you work with a Digital Influencer, you are getting more than someone sitting in their bedroom for a few hours recording and editing a video. You are getting video production/editing/direction, talent, natural amplification AND celebrity/influence.

If I was to conservatively price out a basic YouTube video looking for 100,000 views (equivalent views to a mid-range YouTube influencer with around 200,000 subscribers), it would look like this:

Scripting/production/shooting/editing - $5,000 (for really basic stuff)
Hiring basic talent (with charisma) - Average $250/hr - ACTRA says you have to pay for a full 8-hour day - $2,000
Boosting - Assuming the CPV (Cost per View) is $0.05 = $5,000 for 100,000 views
Influence/Celebrity - hard to price this, but Kim Kardashian makes $100,000/hr for appearances and Snooki makes $25,000. Neither of them show up on the most influential list. Let’s be conservative, though, and say $10,000 for the appearance.

That nets out to a very conservative estimate of value for a YouTuber with 200,000 subscribers (and ~100k views/video on average) to $22,000 per video.

The Bottom Line

When you hire a Digital Influencer, you aren't paying for the few hours they take to record the video or the quality of the camera or editing work. You are paying for their SOCIAL CAPITAL, which in their world is VERY tangible.

You can see their subscriber numbers and the way their audience is deeply engaged in everything they do (from what they are wearing to who they listen to and beyond). They've spent years building deep trust with their audience by investing in them and being open and transparent. According to a study by Variety, Digital Influencers rate higher than Hollywood celebrities in influencing purchases.

To dismiss them for being too young or their work being too fun/easy or their content being too casual is to completely miss the reality of the situation: your brand should have invested in digital content years ago. Just one 30-second spot would fund anywhere from 1-10 YouTube stations for a full year (depending on your production investment + complexity). That sort of investment would mean a smaller long-term investment, bringing that efficiency that many companies look for today.

I still believe that working with Digital Influencers is one of the strongest short term marketing tactics you can deploy today and going forward, but it's also important you learn from them and invest in becoming an influencer yourself.